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Your landscaping company can lease a truck for $8200 a year for 5 years It can instead buy the truck for $35000 The truck will be valueless after 5 years a What is the present value of the

Your landscaping company can lease a truck for $8,200 a year for 5 years. It can instead buy the truck for $35,000. The truck will be valueless after 5 years.

 

a.

What is the present value of the lease payments, if the opportunity cost of capital is 6%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

 

Present value $

 

b. Is it cheaper to buy or lease?
   
 
  Lease
  Buy
 

May 13 2020 View more View Less

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